Capital Markets (Dealers) module:

21.

Which of the following is an example of a capital market product?

Corporate bond

Savings account

Money market fund

Checking account

22.

What is the main purpose of an exchange-traded fund (ETF)?

To provide financing for companies

To facilitate the trading of a basket of securities on an exchange

To issue government securities

To provide education and training to capital market participants

23.

What is the primary purpose of the Capital Markets (Dealers) module?

To enforce compliance in capital market activities

To educate dealers about capital market products

To provide guidelines for capital market transactions

To regulate capital markets

24.

What is the difference between primary and secondary markets?

Primary markets are regulated, while secondary markets are unregulated.

Primary markets involve the issuance of new securities, while secondary markets involve the trading of existing securities.

Primary markets are open to individual investors, while secondary markets are restricted to institutional investors.

Primary markets have higher liquidity than secondary markets.

25.

Which of the following is an example of a primary market transaction?

Buying shares of a publicly traded company on the stock exchange

Purchasing newly issued shares of an initial public offering (IPO)

Trading corporate bonds on a secondary market

Selling government bonds to an institutional investor

26.

Which of the following is a characteristic of preferred stock?

It has higher potential for capital appreciation than common stock.

It pays dividends to investors before common stockholders.

It has voting rights in corporate matters.

It represents ownership in a company.

27.

What is the purpose of market makers in the capital markets?

To issue new securities and facilitate their sale

To provide education and training to capital market participants

To regulate the markets and enforce compliance

To provide liquidity by buying and selling securities on a regular basis

28.

What is the difference between a stock exchange and an over-the-counter (OTC) market?

Stock exchanges have physical trading floors, while OTC markets are electronic.

Stock exchanges are regulated, while OTC markets are unregulated.

Stock exchanges only trade stocks, while OTC markets trade various securities.

Stock exchanges have higher liquidity than OTC markets.

29.

Which of the following is a characteristic of debt securities?

They pay dividends to investors.

They have a fixed maturity date and pay interest.

They provide voting rights to investors.

They represent ownership in a company.

30.

What is the purpose of a prospectus in the capital markets?

To set the trading price of the securities

To regulate the capital markets and enforce compliance

To provide information about the company issuing securities

To assess the credit rating of the securities

Capital Markets (Dealers) module:

Leave a Reply Cancel reply

You missed

When should we use “can” and “could”?

Unlock Your Earning Potential: Top Ways to Make Money Online

Enhancing Ease of Living: EPFO’s Expansion of Auto-Mode Claim Settlement

Empowering Education: G.R. Thanga Maligai’s Scholarship Initiative for Aspiring Students

Capital Markets (Dealers) module:

Related Post

Leave a Reply Cancel reply

You missed

When should we use “can” and “could”?

Unlock Your Earning Potential: Top Ways to Make Money Online

Enhancing Ease of Living: EPFO’s Expansion of Auto-Mode Claim Settlement

Empowering Education: G.R. Thanga Maligai’s Scholarship Initiative for Aspiring Students